SEC Comment Letter 0000000000-23-006157 to Monster Beverage Corp (MNST) (CIK 0000865752) (MNST)
Monster Beverage Corp (MNST) (CIK 0000865752)
Date: June 8, 2023 · CIK: 0000865752 · Accession: 0000000000-23-006157
AI Filing Summary & Sentiment
File numbers found in text: 001-18761
Letter
United States securities and exchange commission logo June 8, 2023 Thomas Kelly Chief Financial Officer Monster Beverage Corp 1 Monster Way Corona, California 92879 Re:Monster Beverage Corp. Form 10-K for the Fiscal Year Ended December 31, 2022 Filed March 1, 2023 File No. 001-18761 Dear Thomas Kelly: We have limited our review of your filing to the financial statements and related disclosures and have the following comment. In our comment, we may ask you to provide us with information so we may better understand your disclosure. Please respond to this comment within ten business days by providing the requested information or advise us as soon as possible when you will respond. If you do not believe our comment applies to your facts and circumstances, please tell us why in your response. After reviewing your response to this comment, we may have additional comments. Form 10-K for the Fiscal Year Ended December 31, 2022 Management's Discussion and Analysis of Financial Condition and Results of Operations Inflation, page 58 1.You disclose here, and in your quarterly filing, that inflation has negatively impacted your results of operations, leading to increased cost of sales and operating expenses. In future filings, please quantify and disclose the impact of the inflationary pressures you are experiencing on cost of sales, gross margins and operating expenses. For example, based on the material decline in gross profit as a percentage of net sales from 56.1% for the year ended December 31, 2021 to 50.3% for the year ended December 31, 2022, specifically quantify the impacts of increased freight rates and fuel costs, including costs relating to the importation of aluminum cans, increased ingredient and other input costs, including secondary packaging materials, increased aluminum can costs attributable to higher aluminum commodity pricing, increased co-packing fees, production inefficiencies, and geographical sales mix.
FirstName LastNameThomas Kelly Comapany NameMonster Beverage Corp June 8, 2023 Page 2 FirstName LastName Thomas Kelly Monster Beverage Corp June 8, 2023 Page 2
In closing, we remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the staff. You may contact Dale Welcome at 202-551-3865 or Anne McConnell at 202-551-3709 with any questions. Sincerely, Division of Corporation Finance Office of Manufacturing
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United States securities and exchange commission logo
June 8, 2023
Thomas Kelly
Chief Financial Officer
Monster Beverage Corp
1 Monster Way
Corona, California 92879
Re:Monster Beverage Corp.
Form 10-K for the Fiscal Year Ended December 31, 2022
Filed March 1, 2023
File No. 001-18761
Dear Thomas Kelly:
We have limited our review of your filing to the financial statements and related
disclosures and have the following comment. In our comment, we may ask you to provide us
with information so we may better understand your disclosure.
Please respond to this comment within ten business days by providing the requested
information or advise us as soon as possible when you will respond. If you do not believe our
comment applies to your facts and circumstances, please tell us why in your response.
After reviewing your response to this comment, we may have additional comments.
Form 10-K for the Fiscal Year Ended December 31, 2022
Management's Discussion and Analysis of Financial Condition and Results of Operations
Inflation, page 58
1.You disclose here, and in your quarterly filing, that inflation has negatively impacted your
results of operations, leading to increased cost of sales and operating expenses. In future
filings, please quantify and disclose the impact of the inflationary pressures you are
experiencing on cost of sales, gross margins and operating expenses. For example, based
on the material decline in gross profit as a percentage of net sales from 56.1% for the year
ended December 31, 2021 to 50.3% for the year ended December 31, 2022, specifically
quantify the impacts of increased freight rates and fuel costs, including costs relating to
the importation of aluminum cans, increased ingredient and other input costs, including
secondary packaging materials, increased aluminum can costs attributable to higher
aluminum commodity pricing, increased co-packing fees, production inefficiencies, and
geographical sales mix.
FirstName LastNameThomas Kelly
Comapany NameMonster Beverage Corp
June 8, 2023 Page 2
FirstName LastName
Thomas Kelly
Monster Beverage Corp
June 8, 2023
Page 2
In closing, we remind you that the company and its management are responsible for the
accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or
absence of action by the staff.
You may contact Dale Welcome at 202-551-3865 or Anne McConnell at 202-551-3709
with any questions.
Sincerely,
Division of Corporation Finance
Office of Manufacturing